Individual health insurance:
Closed block solutions
The Academy's Health Rate Filing Task Force recently prepared a report on regulatory proposals for the individual health insurance market.
The report describes the current market and outlines several alternative regulatory solutions for the closed block problem: (1)prefunding, (2) inter-block subsidy, durational pooling, (3) inter-block subsidy, rate compression, and (4) individual medical pools. It is anticipated that the NAIC will include a single closed block solution in a revision of its health rate filing guidelines.
Use the links below to read the report and to see the computer model that analyzes the results of each of the four possible solutions.
The report
Volumes
1 and 3 of the task force's May 2004 three-volume report are
in one PDF document. Volume
2, which provides documentation for the accompanying computer
model, is in a zipped file (updated June 15, 2004).
The rate filing model
All of the following six files must be downloaded and unzipped to the same directory in order for the model to work. Use an unzipping program to access them before you try to open them in Excel. (Info about zipping and unzipping is available from WinZip or from technology staff at your organization.)
More info
If you need more information, contact State Health Policy Analyst Geralyn Trujillo (trujillo@actuary.org).
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